Round Hill Mgt. Co. v. Higgins

In Round Hill Mgt. Co. v. Higgins (177 A.D.2d 256 [1991]), the First Department refused to assess treble damages against the successor owners because there was no evidence that the owners knew or had reason to know that their predecessor had collected an overcharge. In that case, the subject apartment was located in a three-building complex that had 10 other apartments identical to the subject apartment. The $ 200 a month rent in effect at the time of purchase was equal to or lower than the rent then being charged for all of these 10 other identical apartments, and the $ 200 a month rent was well below the market rate. Given such circumstances, the Court held, "it is indeed irrational to characterize the overcharge found by respondent by application of its default formula as 'willful.' " (Id. at 257-258.)